Since the previous bullish run, the crypto sector has experienced various developments: Terra’s decline (LUNA), FTX plunge, and even USDC depeg. Despite these happenings, certain business leaders, including Joseph Lubin, insist that cryptocurrency is now more powerful than ever before.
Despite Recent Turmoil, Cryptocurrencies Are Still Doing Well.
During an interview with CNBC, Joseph Lubin, co-founder of Ethereum (ETH), expressed his views on the current state of the cryptocurrency ecosystem. Despite facing some challenges related to microeconomics and finance, Lubin believes that the crypto ecosystem is thriving. Lubin pointed out that developers are increasingly joining the ecosystem to create an alternative economy, and they are not leaving. On the other hand, speculators tend to come and go. Lubin further added that the development within the ecosystem has never been better. According to a study conducted by Electric Capital earlier this year, the number of developers involved in the crypto ecosystem has been consistently increasing, with Ethereum, Polkadot, and Cosmos leading the way.
Cryptocurrency Regulations Are Good, But They Should Not Stifle Innovation
Joseph Lubin also discussed the topic of cryptocurrency regulation, including the restrictive measures taken by the US Securities and Exchange Commission (SEC). He said the industry would benefit from greater clarity and more explicit guidelines. Lubin highlighted the confusion between the “cryptocurrency” and “techno crypto” factions within the industry. Lubin suggests that regulation should focus on the “cryptocurrency” faction, which includes issues related to tokens that are considered securities. The “techno crypto” faction, on the other hand, consists of innovators who should not be subject to the same regulatory measures.
According to Joseph Lubin, Ethereum Is Not a Security
The conversation also touched on the topic of whether Ethereum (ETH) should be classified as a security or a commodity, particularly in light of recent information from the CFTC that considers ETH to be a commodity.
When asked about the New York Attorney General’s lawsuit against the KuCoin exchange, which regards ETH as security, Joseph Lubin dismissed the claim, stating that anyone can make any claim they want, but that does not make it true.
Lubin appears to agree with the CFTC’s opinion that ETH is unlikely to be considered a security. However, he calls for greater regulatory clarity and a distinction between the various players in the industry to promote healthy development.